Reward Minerals Ltd · ASX:RWD
Reward Minerals — Investor Presentation (December 2017)
24 slides from Reward Minerals's investor presentation, December 2017
Slide 1: Corporate Presentation – Melbourne & Sydney Roadshow
REWARD MINERALS LIMITED Corporate Presentation Melbourne & Sydney Roadshow December 2017 ASX | RWD www.rewardminerals.com
Slide 2: Forward Looking Statements & Disclaimer
FORWARD LOOKING STATEMENTS & DISCLAIMER This document includes forward-looking statements. When used in this document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should”, and similar expressions are forward-looking statements. Although RWD believes that t
Slide 3: Highlights
HIGHLIGHTS Sulphur of Potash (‘SOP’) is: ► A premium fertilizer in short supply with strong market growth ► A market of some 6Mt per annum worth approximately US$3.0bn Large surficial brine resources: ► Are globally scarce, vary in scale, chemistry, grade and extractability ► Enable significant oper
Slide 4: Corporate Snapshot
CORPORATE SNAPSHOT Capital Structure 28 Nov 2017 ASX:RWD Ordinary Shares on Issue 135.8m Options on Issue Nil Share Price $0.25 Undiluted Market Capitalisation $47.5m Estimated Cash & Equivalents1 ~A$3.6m Undiluted Enterprise Value A$43.9m 1. As per September Appendix 5B Major Shareholders Name Shar
Slide 5: SOP Market Overview
SOP MARKET OVERVIEW SOP is the premium Potash fertiliser ► Sulfate of Potash – “SOP” or K2SO4 2014 Global Potash Consumption ► 44.8% Potassium, 55.2% Sulfate (MOP: 54% K, 46% Cl) ► Provides plants with a chloride free source of potassium and sulphur ► Potassium is an essential plant macronutrient; i
Slide 6: SOP Growth Drivers
SOP GROWTH DRIVERS 80 8 Demand is driven by Global Midyear Population (billions) 70 7 ► Increasing population, decreasing arable land Potash Demand (Mt) 60 6 ► Diet influenced by changing demographics 50 5 ► Concerns over increasing soil salinity 40 4 ► Need for improved water efficiency 30 3 ► Indi
Slide 7: Global SOP Production >100ktpa
GLOBAL SOP PRODUCTION >100ktpa Close to 70% of supply is from high cost Mannheim or K Salts Production LD could be the largest brine SOP producer outside China Yara Kokkola – 200ktpa Compass Minerals ▪ SOP (Mannheim) Great Salt Lake – 300ktpa K+S ▪ SOP (Brine) Aktiengesellschaft– 1,200ktpa Xinjiang
Slide 8: Global SOP Cost Curve (Mine Gate)
GLOBAL SOP COST CURVE (MINE GATE) Primary playa-style brine SOP deposits have the lowest production costs 500 450 400 Estimated Operating Cost / t (US$)1 350 LD’s Estimated 300 Ex-works cost of Production2 250 200 150 100 50 0 SDIC Compass Compass Mannheim Rusal K+S Kali Minerals SQM Luobopo Estimat
Slide 9: Playa and Palaeochannel Basics – 1
PLAYA AND PALAEOCHANNEL BASICS – 1 A picture paints a thousand words….. 50 Use of the Lake Wells image is purely for the purpose of geological explanation only and is not an opinion of potential projects that may one day be located there. 9
Slide 10: Playa and Palaeochannel Basics – 2
PLAYA AND PALAEOCHANNEL BASICS – 2 But here are some words to explain the difference….. Playas Palaeochannels Linear, space is a constraint on abstraction Large surface area – space is not a system design & therefore environmental constraint on abstraction system design. risk. Low energy depositiona
Slide 11: But It's Not Just About Geology… Evaporation
BUT ITS NOT JUST ABOUT GEOLOGY… The operating environment is also key, such as evaporation….. ~ Lake Disappointment 11
Slide 12: But It's Not Just About Geology… Rainfall
BUT ITS NOT JUST ABOUT GEOLOGY… And rainfall….. ~ Lake Disappointment 12
Slide 13: LD SOP Project - Introduction
LD SOP PROJECT - INTRODUCTION ► 100% owned – the largest SOP resource in Australia, offering long life and scalability ► Excellent brine chemistry with one of the highest grade resources in Australia ► A playa* with extensive resource upside ► Testwork has demonstrated LD will use established proces
Slide 14: A Globally Significant Tier 1 Resource
A GLOBALLY SIGNIFICANT TIER 1 RESOURCE LD’s Drainable SOP Resource dwarfs other WA resources Accessible Zone Exclusion Zone Open to depth Notes: 1. Total area of the lake:1,241km2 2. Total area of the exclusion zone: 492km2 14 Refer to ASX Announcement dated 7 February 2017 for full details of the M
Slide 15: A Globally Significant Tier 1 Resource
A GLOBALLY SIGNIFICANT TIER 1 RESOURCE LD’s Drainable SOP Resource dwarfs other WA resources Assigned Specific SOP Brine Unit Nominal Dimensions (m) Volume Area Yield Drainable JORC Resource Hydrostratigraphic Unit Grade Symbol Effective 3 (1) SOP (Mt) Status Porosity (kg/m ) 3 Top Base Thick. (m x
Slide 16: A Globally Significant Tier 1 Resource
A GLOBALLY SIGNIFICANT TIER 1 RESOURCE LD’s Drainable SOP Resource dwarfs other WA resources WA 1 WA 2 WA 3 WA 4 RWD A RWD E RWD Total Drainable SOP Reserves Probable Mt 2.66 SOP Grade kg/m3 14.212* WA 1 WA 2 WA 3 WA 4 RWD A RWD B RWD Total Drainable SOP Resources Indicated Mt 0.0 12.7 4.3 4.4 7.5 4
Slide 17: LD – Three-Stage Production Process
LD – THREE-STAGE PRODUCTION PROCESS Well-established process - harvested salt goes through a milling, conversion and crystallization process - SOP ready for crop application Brine Supply & Harvest Capex - A$100M Opex - A$67/t SOP LD PROJECT SCOPING STUDY Process Plant Capex - A$93M Capex – A$320M (U
Slide 18: LD – Ongoing Trench Trials
LD – ONGOING TRENCH TRIALS • Commenced mid-Sept • One trench pumped continuously • Rates from 6l/s to 15 l/s • Steady state ~ 10l/s • Planned to pump two trenches in parallel • Abstraction test on first trench extended as only minor drawdown detected in monitoring bores • Now deepening trench 1 to t
Slide 19: LD – Status of PFS and EPA Process
LD – STATUS OF PFS AND EPA PROCESS PFS ► Progressing well, CPC Engineering working with RWD ► Completion early in the New Year ► Further Evaporation Pond trials underway – seepage trials ► May inform PFS but not reliant on results EPA ► Thorough environmental assessment has been conducted ► Detailed
Slide 20: Conclusions
CONCLUSIONS ► Reward is the 100% owner of the LD SOP Project which is: ► Potentially the world’s largest and one of the highest grade SOP brine resources ► Located in a low rainfall, high evaporation region with excellent brine chemistry, which allows use of established processes ► Subject to a full
Slide 21: Appendices
Ke APPENDICES REWARD MINERALS LTD
Slide 22: Experienced Board & Management
EXPERIENCED BOARD & MANAGEMENT Colin McCavana – Non-Executive Director, Chairman - 30+ years experience in mining and earthmoving industries Daniel Tenardi – Projects Director including the management, acquisition and development of - 25+ years mining experience with various organisations projects i
Slide 23: Competent Person Statement
COMPETENT PERSON STATEMENT This information in this report that relates to Resource Estimation and hydrogeology is based on information compiled by Mr Robert Kinnell, a hydrogeologist and Competent Person who is a Member of The Australian Institute of Mining and Metallurgy and a Fellow of the Geolog
Slide 24: Reward Minerals Ltd contact details
Reward Minerals Ltd 159 Stirling Highway Nedlands WA, 6009 (T): +61 8 9386-4699 (W): www.rewardminerals.com
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